BPPA cuts Kerteh acetic acid rates, eyes shutdown

13 November 2008 03:00  [Source: ICIS news]

SINGAPORE (ICIS news)--Malaysia-based BP Petronas Acetyls (BPPA) slashed operating rates at its 535,000 tonne/year acetic acid plant in Kerteh, Terengganu, to 75% this month due to poor demand, a company official said late on Thursday.


The plant was running at rates 20-30% below October levels. The company has not ruled out taking the plant offline if weak market conditions persist, he said.


“We are considering a shutdown in the near term,” the official said, although exact dates could not be confirmed.


BPPA’s acetic acid output cut comes amid an impending shutdown at BP and Formosa joint venture FBPCC’s Taiwan acetic acid unit in response to poor demand.


Major acetic acid producers in Asia include Celanese, CPDC, Shanghai Wujing, Jiangsu Sopo, Daicel Chemical Industries, Showa Denko and GNFC.


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By: Helen Lee
+65 6780 4359

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